Escrow
Terry,
Our mortgage company recently revised our escrow assessment and added nearly $500 to our payment for “shortage”. They also require that we have nearly $3,000 as a minimum balance in our escrow.
Should we make that escrow payment to ourselves instead and can we then put that money into our retirement account and earn on it (currently at 25% return and 11% over time) until our ins and tax payments are due?
We would place it in my husband’s account – he is over 73 and retired.
Terry Says
If the bank wants money in escrow (presumably for the prospect of rising property taxes), you’ll have to deposit the money in that account — either a one-time payment, or through higher monthly payments.
That has nothing to do with your retirement accounts. BUT a word of warning. I wouldn’t count on 25% returns in the future!!
You should always have some liquid money in cash (money markets) for situations like this.
